CANADA STOCKS-TSX set to open higher despite China worries

March 12 (Reuters) - Canada's main stock index was set to
open higher on Wednesday, reversing losses in the previous
session, even as commodities dropped on worries about the
Chinese credit market.

TOP STORIES

* A fall in copper to near four-year lows compounded
increasing concern about China's economic slowdown, sending a
wave of unease through world financial markets.

* European Union member states have agreed on the wording of
sanctions on Russia, including travel restrictions and asset
freezes against those responsible for violating the sovereignty
of Ukraine, according to a draft document seen by Reuters.

* China's first domestic bond default has shaken the copper
market, stoking worries that financing deals that have locked up
vast quantities of copper could unravel.

* A new free trade agreement with South Korea will throw a
wrench into Canada's auto sector recovery, union leaders and an
automaker warned on Tuesday, highlighting the pressure on an
industry struggling with competition from Mexico.